a. How a company generates the cash it brings in and how it spends its available cash (what does the company buy with its cash) is the subject of which statement?

Balance Sheet.

Income Statement.

Statement of Cash Flows.

Statement of Other Comprehensive Income.

b. A machine that is purchased with an estimated useful life of 5 years is said to be a capital asset. When the purchase of this asset is recorded into the accounting records, an increase would be recorded to which of the following accounts?

Property Plant and Equipment

Retained Earnings

Finished Goods Inventory

Long-Term Investments

c.

Mary was in the business of raising, and selling sheep. Mary had several little lambs, 15 ewes, and 5 rams. In Marys accounting system, these animals were which of the following:

depreciable assets

inventory

prepaid expenses

none are correct